China Opts For Eye For An Eye Retaliation As Trade War 2.0 Breaks Out
Source: SeekingAlpha
2025-04-04 11:40:00 ET
Summary
- As expected, China opted for a strong response, hitting back against the US 'Liberation Day' tariffs with a 34% across the board tariff on the US.
- There do not appear to be exemptions in place, and the response appears to be in the spirit of an eye for an eye.
- While the US is still obviously a very important market, fewer firms are now existentially dependent on US suppliers or consumers compared to before the first trade war.
- Given the US exports to China are obviously much smaller than their imports from China, the retaliation may not have the same bite at first glance, but will likely also have significant implications on specific industries.
By Lynn Song
As we wrote in our earlier note, the abrupt hike in US reciprocal tariffs indeed prompted a strong response from China, opting to match the retaliatory tariffs of 34% across the board. There do not appear to be exemptions in place, and the response appears to be in the spirit of an eye for an eye....
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China Opts For Eye For An Eye Retaliation As Trade War 2.0 Breaks Out
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